welcome to "lunch money." i am adam johnson. in motors, tesla plus charge. driving to new heights. the earnings parade in full swing. even something for the oktoberfest crowd. breakfast time in the east and recipe for success? sports. this is executives, listen up. you can learn a lot from russell wilson. accounted swiss bank allowed wealthy foreigners to a

baby taxman, but the crackdown in recent years has put tanks -- bangs on the firing line. today was credit suisse's turn to answer. showedt 200 pages worth tax evasion. is match as $10 million was hidden assets. the vast majority of accounts were shielded from the irs. >> that brought the ceo and other top executives at swiss holes of the congress. books are investigation chronicles the uneven and halting progress made in identifying u.s. taxpayers who cheated uncle sam by using offshore accounts. a bipartisan report that we're releasing today sites chapter and verse the failure to collect taxes owed and hold accountable the u.s. persons who evaded their tax obligations and the

tax havens who helped them. we learned of one swiss anchor who met with the u.s. client over breakfast that he was luxury hotel and slept the client bank account statements in between the pages of a sports illustrated magazine. instanceslarming belong in a spy novel, not at one of the world's top tanks. betweensay your call two countries laws, but when you come to this country, you send bankers into the united states, set up an office in the united states, help u.s. customers hide what they're doing from u.s. authorities. that is what you did. ceo posturing.e years, the past five credit suisse has become one of the leaders in switzerland, encouraging legal, cultural, and business changes to enable the united states to have transparent access to information about u.s. clients and to enable the united states

to recover taxes that are still unpaid by americans holding assets abroad. i can assure you not all banks in switzerland agree with us and many have privately and publicly opposed the positions we take. but for me it is very clear. swiss banks can only hold assets that u.s. clients have established are compliant with u.s. tax law. seeking out u.s. customers who want to hide untaxed assets and profiting from these assets is simply not acceptable. credit suisse's management team despitedeeply industry-leading compliance measures we put in place, we had some private bankers who appeared to have violated u.s. law. credit suisse is ready at this moment to revived -- provided e the additional information. we're been unable to do so because the senate has not yet ratified the credit fall -- protocol.

we urge you to do so so we can assist in recovering unpaid u.s. taxes. >> the u.s. crackdown on offshore tax evasion has a ready nabbed ubs in 2009. they avoided prosecution by paying a $780 million from admitting it fostered tax evasion, and turning over the names of 4700 account holders. there are still more account holders out there who have not paid uncle sam. the question is -- >> >> i want to ask you this question. have you urged the government of switzerland, the parliament of switzerland to allow you to give us the names of your customers that you aided and abetted in 2008?ating taxes prior to >> yes, we have. the report was highly critical of the justice department for failing to go after those account holders. >> if john doe subpoenas and the

justice department fully carried out what they could carry out in this country, would you will comply with those subpoenas? senator, that is difficult, impossible under swiss law we would all face criminal indictments in switzerland and most like we prison terms if we would hand over these client names. without the permission of the swiss government. if i may just say in the ubs matter, the chairman mentioned at the beginning the 4500 names that ultimately were turned over were turned over as a consequence of a treaty that was entered into between the u.s. government and the swiss government that allowed any accounts with at least a balance assets management of one lane dollars and more be turned over. i would say under the new double taxation treaties are the one

estimates to be ratified here in the senate -- and i urge you to ratified as quickly as possible -- you will get many more accounts and you can get them the oneand, hopefully, million asset limitation is not in the treaty. said his bank has urged the swiss government to change its own law, line disclosure -- allowing disclosure. and why elon musk new tesla model s tops the consumer reports 10 best vehicles. we are going to take you to the low line later in design and motorola mobility, cut the price with aphone to one penny contract. newmont is on horizon. mobile world congress in barcelona for its new x2 is due later in the summer. ♪

>> welcome back to "lunch money."

live onso streaming bloomberg.com, your tablet and smartphone. elon's motors, tesla ceo musk has many reasons to smile. he made more than $1 billion overnight. shares of his electric car companies surged on investor optimism over his plans to build one of the biggest battery factors on earth. consumer reports has ranked his model s best overall vehicle on the road. what is next? he told us last week. >> tesla has built up a significant expertise in autonomous driving. i would not use driverless cars because what we like to use his autopilot which is similar to an aircraft were you still expect someone to be able to pilot the plane, but the autopilot helps improve decision and safety and reduce pilot workload and that

kind of thing. that is the way we view autopilot in a car. i would venture to say at this point, we are probably got the strongest autonomous driving engineering team of any car company -- or maybe any company. continuing to build on that engineering expertise. firstexpect to be the company to market with significant autonomous driving function in vehicles. >> since the start of the year, his fortune is grown by about $3.8 lien. according to the bloomberg $11.7 index, he's worth billion. he is the 94th richest person in the world.

former chrysler ceo joined us this morning and shared his own thoughts on the future for electric cars as well as other alternatives. >> electric car, it's interesting it is taking off. it will be interesting to see what happens when the subsidies come off because that is a big deal right now. >> what about oil prices? what does it do for the future of elon musk's electric car? >> i am by some energy independence. we ought to be using more natural gas. we ought to be using more cng. >> in cars? >> yes. it is very doable. it gets us more efficiency. we become more energy independent. >> if you're in the market for less fuel-efficient way of getting around, just call the army. it is giving away their team thousand armored vehicles left over from iraq and afghanistan. there are mine resistant ambush protected truck built

specifically for the challenges of warfare. take a look at who is getting their hands on some very high-powered military surplus.

one place that definitely doesn't need any more trucks, beijing. in an effort to manage traffic congestion, the city is limiting the number of new license oness, allowing expiring to bid on them. 1400 request so far for electric cars. this is according to municipal website. either way, that is in a city of 21 million people. beijing even bigger problems. it is probably air pollution. the city has been plagued by thick smog which has reached hazardous levels just ahead of the national people's congress next week.

here's a solution, maybe. underground parks. they're trying it in new york. we will play but a new green innovation bringing sunlight, fresh air were you would least expect it. something else for you, gold coins are part of what is being called the greatest area treasure ever discovered in the united states. turns out a california couple taking a walk saw an old cannon sticking out of the dirt on their property. they dug deeper and found more cans. they were jammed with coins from the mid-to-late 1800s. experts say they could sell for more than $10 million. let's go for a walk. ♪

back.come i want to bring you breaking news crossing on bitcoin. the fbi said to be probing ox.sible, violations by mt. g also the manhattan u.s. attorney is said to be reviewing mt.gox. it went off-line as today. roughly 400 million dollars is missing. u.s. is said to request documents. an escalation into what went theg -- an escalation into investigation as to what went wrong. we will be following this throughout the day. back to you. this is "lunch money."

i am adam johnson. imagine a world where underground parks are the norm. the concept has become a real possibility things to someone named james ramsey. he's participating in the second annual design conference coming up in march. oh, my god, what a crazy question. me, the idea of design is just coming up with the most perfect elegant solution to a problem that you identify. oftentimes i think people tend to focus on finding a solution without really looking at the problem. my project is a kooky idea that proposes using cutting-edge solar technology to irrigate natural sunlight into an abandoned trolley terminal. it just so happened i know former engineer who pointed out

the area. in my head but intimately went to, how can we share that amazing sense of discovery? it led to, i just so happen have a trick that i think i can use to turninto something completely different in a space you can both discover and also want to spend time in. we got our hands on the original engineering drawings from 1905 and started to model in a rough way the technology and had the realization, oh, my god, you can too.th stuff, you can use a system of optics and deliver all sorts of funky locations are you wouldn't otherwise have any access to the sun, then spread out light back up to almost simulate the sky. being able to put natural light into all sorts of settings -- hospitals, schools, jails, basements, office interiors.

it is something that psychologically is ultimately unthinkable. >> the second annual design conference as inferences go for the arts on march 10. for tickets and information, go week.com.rgbusiness beijing has been reaching hazardous levels of smog for many days. pollution is said to be the city single most prominent problem. stephen engle shows us just how bad the air really is. >> we in the media sometimes like to use cute terms like airpocolypse to describe the smog in beijing this week but it was perhaps a government linked think tank that said it best, calling beijing almost uninhabitable. the evidence for such a claim is as clear as the air should be. how uninhabitable is beijing?

>> [indiscernible] >> it is disgusting to go outside? the concentration of the fine particulates post -- that pose the greatest risk to human health sword in the past few days. 16 times the maximum exposure health organization recommends. >> it can cause many different symptoms. it can cause cancer coaches the most severe consequence i can appear after many years to ron kind is to infections that happened because the lungs and the system is actually attacked by the bad air pollution. >> you want to see what we are breathing in beijing? check that out. vips are not exempt. it is not just the area to worry about in beijing, but the groundwater is polluted as well. a 2009 report from the

government itself, i might add, of all theto 3/4 surface water in urban areas in china is unsuitable for drinking. it is quite disgusting, actually. you're the multiple cases of food safety issues in china and the closure of wet markets like this slaughtering chickens will stop because of their cessation with avian influenza. it begs the question, are tiny cities like beijing toxic to live in? toxic tosay beijing is live. there are days like this that are really, really bad in terms of air pollution. you can't escape it because everybody has to re-the air. that is why we're so concerned. but in many ways, you can adjust your life to protect herself from health hazards. even in air pollution, stay inside. do less visible activity. >> and you run your air purifiers at full blast and hopefully, can still find replacement filters when they turn black in just a few weeks. and on days when i'm driving

like this, i am thankful my car, the air intake has filters. here is perhaps the biggest crime from the grime. children playing outdoors. at school on days when hospitals are reporting a doubling of asthma and emphysema patients. it seems that everybody is getting the message. >> 147 industrial companies have suspended production to help fight pollution. the next half hour of "lunch money," your teacher today, super bowl winning quarterback russell wilson of the seattle seahawks. ♪ >> we are on the markets. let's get you caught up on where the markets are trading. stocks are higher right now.

hovering close to the all-time record. one stock we are watching is ebay after carl icahn issued a letter to shareholders calling the company's governance "dysfunctional." ebay shares up about 2.5%.

is "lunch money." we are streaming live on your tablet and phone. pro-and anti-russian demonstrators broke out in ukraine. they clashed outside a parliament building where lawmakers were holding a crisis session. attention is especially high after russian vladimir putin ordered military exercises to test readiness. this is what you will find if website. mt. gox's the ceo says he is working on a problem plaguing the equinix change. he says he still in japan and

also wants people to stop asking questions of his staff. they have been instructed not to say anything. in the meantime, the fbi said to be hoping possible, will best possible criminal charges. from the gridiron to the diamond, quarterback for florida state, also plays for the seminoles baseball team. he had two at-bats in a next mission game against the yankees yesterday. a groundout and strikeout. nader he said it was close to -- later he said playing the yanks was close to surreal. earnings bonanza today. we will start with retail. target topping estimates. talkedmbie & fitch also the analyst estimates. the company announced it would buy back $159 worth of shares in the current quarter. lowe's also announcing a buyback, supporting in-line earnings before your forecast is below the estimates.

turning to airbus, record backlogs of 21% over last year in spite of over $1 billion in write-downs. i spoke with the cfo and this is what he told us about the challenges he faces. -- we had to take a charge in the 2013 numbers. we need to make sure the ramp-up in line with the schedule and the customer commitment remains on track will stop from today's point of view, we have our hands around it. our maximums attention in 2014. >> onto beer. anheuser-busch is the biggest brewer in the world. the rolled cap is this summer. .nd more expensive craft beers bigger brewers are going smaller to get bigger.

>> first, what is a craft beer? theirof people think beers are in small batches. a craft beer is any beer brewer that makes less than 6 million barrels a year. that is a heck of a lot of beer. i keep a list on my iphone of what years i like and what beers i don't like. i was shocked to find a few of my favorites owned by anheuser-busch. you wouldn't think blue point is owned by anheuser-busch. take it was owned by miller coors. that doesn't mean it is bad. >> do they allow for the methods to stay the same? >> they try to separate themselves in many ways. for one thing, they create separate holding companies to own the smaller labels they own. miller coors had it division to try and blur the lines.

another created green valley brewery so when you're on one of their smaller labels's website, it will say owned by green valley brewery and not ab inbev which might scare off some people. beer fest,g to the drinking craft beer may have some advantages. ready? fewer calories. fewer trips to the bathroom as well. taco bell's new menu may be to your hard work at the gym. that is next. giants wide receiver victor cruz tells us how he focuses on the field and what it is like being part of jay-z empire. ♪

>> this is "lunch money." talk about once to serve you breakfast with a waffle tocco. the breakfast wars have begun. coming march 27 on an expanse of a trial run that began in 2012. they're trying to take on mcdonald's. itre is talk they may expand the whole day. twitter is exploding over what some have called the abomination that is a waffle tocco.

waffle is just as it sounds, a waffle stuffed with eggs and either bacon or sausage. i would like some hot sauce on it. fast food chains are making a big morning push. breakfast is very profitable. >> it is time for your fast food breakfast economics. fast food chains what your business before lunch. it is a huge opportunity for them to reaching up -- ring up extra sales. employees are all ready preparing lunch. working has been trying to boost breakfast sales and taco bell is rolling out a new breakfast menu with creative items like the waffle taco. it is not as easy as it looks. wendy's try to offer breakfast and it did not go too well. we spoke with food industry

consultancy about how fast food chains are getting sleepy customers through their doors in the morning. number one, coffee. and not just any coffee, but good coffee. look at the recent success of starbucks and dunkin' donuts. coffee is highly credible and it is a newly ritual. two, low prices. many people don't even eat breakfast and those who do do not want to spend a lot. if your menu prices are too high, your customers are just going to have a cereal bar at home. three, creative menu items. did i mention taco bell's waffle taco? you can get it anywhere else. having something unique strengthens their breakfast menu. four, speed. no one wants to be late for work. if all else fails, just copy mcdonald's. when it comes to fast food

records economics, the egg mcmuffin is king. mcdonald's accounts for 31% of all morning fast food sales. any others have tried to compete, but no one has been able to catch up. a they have been doing it for long time and they do it at a very reasonable price point, i would say. when starbucks had breakfast sandwiches, we wanted higher-quality product which was a little more expensive than maybe some of the competitors. i think that allows them to hold the line on their menu. starbucks has made huge headway's in the way. >> does that mean mcdonald's should not be nervous about taco bells breakfast menu launch? isi don't think mcdonald's going to miss a beat on this one. the guys are going to lose are going to be the cold cereal manufacturers. they have been losing all along. they will continue to lose because people are eating breakfast where they want to and not sitting down about used to

be called the breakfast room table to eat cold cereal in their home. >> really? >> hang on, if i eat post raisin bran for breakfast now and have been doing so for 10 years, even while the mcmuffin has been available in the biscuit sandwich for mcdonald's and all the other stuff i could get, i'm going to change that now to go and buy a waffle sandwich at taco bell? >> breakfast is perhaps the most ritual time of day, but if you look at what most people are doing, they're eating less cereal in the morning and going preferably,s, secondarily, dunkin' donuts or starbucks. taco bell will clearly do a good job because they are a first-rate operator and they have got some novel products. they're going to hurt mcdonald's very little. mcdonald's has done a brilliant job, principally in coffee. ruckus is all about coffee. the former ceo says it really is all about the coffee. >> if they do a beverage

strategy like dunkin' donuts has , and that people coming to the store to get coffee and no doughnuts, just for the coffee, krispy kreme is never figure that out but if taco bell figured that out, that could be a game changer. be a challenge. i think he would put fear into mcdonald's and dunkin' donuts as they work on that side of the business. priced itsl has coffee at $1.79. mcdonald's? only one dollar. the superbowl winning cornerback has some serious lessons in business for you. new york giants wide receiver victor cruz tells us how he gets the job done and how he gets it done off the field. this is lessons in football from a football from coming up next in sports. ♪

sports, we have business

lessons from the gridiron. russell wilson still on a high from the super bowl victory earlier this month. the underdog seahawks crushed the favored denver broncos. he told charlie rose it came down to mindset. >> to think about the fact the seattle seahawks have never one a super bowl in franchise history and to be the first one to ever do it, our team had a great year. one of the things i told our team and the beginning of the year, i said, why not be the super bowl winning quarterback? i said, why not us? that was our mindset. we just went for it. >> you can learn a lot about business from a quarterback. the best quarterbacks are natural born leaders. russell wilson is no exception. >> god has given me a special gift to relate to certain people, to be able to change a culture, hopefully, for the positive, and to be able to affect many people's lives and to be able do relate to people

will stop -- people. and just to help them believe they are doing and what they been given as well. but i also think my parents continued to instill that amy at a young age with my discipline, with my approach, my thought process and my purpose. all of those things they talked about and all of those questions, russell wilson, what -- all of those things that keep my mind on it. at the end of the day, i was china say earlier as well, any great leader also has this is, the self voted later mentality to them. that is what i try to have. motivatoro be a self if you want to be great at anything in life. once you have the motivation, then it is all about execution. here's how wilson gets it done starting with the snap. >> i have a checklist in my

head. when i break the huddle, i try to be calm and go to the line and to my safety in the corners in the defensive line in the linebackers. i anticipate what they're going to do. i have prepared so well. >> what the defense of back is going to do? >> iwatch his feet and his hands. >> what does that tell you? what he's proceeding might happen? >> i'm trying to be ahead of the game. as i go to the line, i have the checklist in my head of the what is my progression. go-to guy air the force comes to worse. what is the second look? >> that is my alert look. i go from one to two to three, sometimes four. >> you primarily have three receivers. >> it depends on the game. every play is different. i go through my checklist. if it isn't there, that is when the scrambling and trying to make lace happens. i just try to be smart.

my dad tommy and other coaches tommy, just salvage the play. if it is not there, other players are going to make plays for you later on in the game, just throw it away or get a positive gain. that is what i try to do. >> should we measure by career or, the super bowls? >> i think it has to be all-encompassing. either way they prepare, affect people, affect organizations. manning how peyton affected the indianapolis colts for so long and then going to the denver broncos. that is what you want in terms of the face of your franchise from a person that can change the community and change the city and the organization as well. unbelievable job. he is definitely up there, for sure. >> you can get more of russell wilson's future plans tonight on charlie rose at 8:00 p.m. as

well as 10:00 p.m. eastern on bloomberg television. victor cruises on the receiving end of the game. he told us how he reads the play. head,e you get the planar you have to look at the defense and see what they're giving you. this is within eight to nine seconds that you have to dissect what you're going to do before you do it against the opposing defense. struggle but sometimes you can get it and you pick it up quickly and run your route and have a step ahead of your opponent without them even knowing it. >> he was a free agent until last year when he signed with rapper jay-z + agency. >> it has been great. to have a guy like jay-z be able to pick up your phone calls and you can pick his brain and talk to them about whatever is under the sun and at this point, it is always good. it is good to have a person like that on your side. >> is that a different kind of relationship then you're used to with agencies and representation? >> not really.

i've always had a good rapport with my agent. i can always pick up the phone whenever i wanted. it just so happens it happens to be someone who sold a couple million records. >> imagine that, right? >> exactly. >> not so bad. >> he is a good example of someone who eats well and really.s maybe will ferrell to learn. >> my friend is going to ask him questions. >> get this going, i don't have a lot of time. >> can you tell us some of your favorite fruits and vegetables? do you like bananas? >> i like to get relaxed, too. >> what kind of music do you like to dance to? >> my favorite is body moving. >> body moving? >> ♪

>> ♪ dj

>> we are on the markets. let's get you caught up. stocks are on the rise. s&p trading above its all-time high record close, almost at it and read a high after purchases of new homes unexpectedly climbed to the highest level in

more than five years earlier today. outperforming the other major benchmark indexes. a couple of individual movers we want to highlight, the first is dreamworks animation. shares are falling by the most since july 2005, down about 13% after the studio behind hit movies like "shrek" reported a 23% decline in fourth-quarter revenue. dreamworks said it took a $13.5 million charge on its animated movie "turbo" which miss fired at the box office this summer. watching shares of jcpenney down more than 35% so far this year. the struggling chain ports earnings today after the bell. .ull coverage on that limoneira ports fell short of analyst estimates. this morning on "in the loop" betty liu asked the former host of kobe partners if he thinks jcpenney could turn itself around.

>> it is the most difficult sector to do a turnaround because it takes a lot of capital. but i think the other question and retailers whether you are relevant. if you ask the question regarding jcpenney or sears holdings, neither of them are relevant. in other words, if they went away, would anyone care? would it matter to the consumers? that is really what drives the business. frankly, i don't think it would. that is the hurdle. and sears are struggling, some stocks are on a tear. adam johnson has a look of a few stocks outperforming. five stocks, one common denominator. take a look at these five names and memorize them. the performance over the past year. way better than the market. these are the momentum leaders.

the question becomes, why are these companies leading? here's why those 5 made the list of momentum leaders "the studies have found earnings growth and earnings revision strategies lead to outperformance after the market makes an all-time high. recently, value strategies have underperformed." in 2009 it was all about value. you look at what was cheapest. now we are at all-time high so nothing is really cheap anymore. yet a look at the want to keep beating the higher expectations. that is what upward earnings revisions are about. we tried to find our own names. we found about 24 and i'll show you 12 of them. all 12 have earnings growth of at least 20% and over the past month, the analyst have upped at least -- at least 10 have upped their earning estimates.

these are 12 of the companies. i found a total 24. i have posted all 24 on my twitter. this group of 24 companies up about 10% year-to-date. earnings momentum number one and upward earnings revision number two, that is how you win in this market. >> adam johnson there with today's insight and action. momentum stocks leading the markets higher. ♪

live from pier 3 in san francisco, welcome to the early edition of "bloomberg west," where we cover the global technology and media companies that are reshaping our world. i'm emily chang. our focus is on innovation, technology, and the future of business. fixed a major security flaw in math computers. or is a note about that allows hacker to track every slight. it gives hackers access to a variety of data. it is more than just